In what could be a boost to U.S. geothermal energy development, Los Angeles has signed a $94-million long-term contract with Reno, Nev.-based energy developer Ormat Technologies Inc. to buy 150 MW from its portfolio of northern Nevada geothermal projects.
The Southern California Public Power Authority will buy the power, reselling the output to the Los Angeles Dept. of Water and Power. The portfolio covers nine plants, including several not yet built. The power contract supports Ormat’s long-term plans to grow its geothermal business in the U.S., says CEO Isaac Angel. Such contracts are critical to the development of projects, the Geothermal Energy Association said in its 2016 power-production report. The U.S. market has about 1,250 MW of geothermal power under development, but about 500 MW are stalled, waiting for power purchase agreements (PPA), the report says. With power contracts, the projects could be brought on line in 17 to 33 months.